Migrants who arrive in Australia from July next year will have to wait three years before they can access certain welfare payments, extending the current two-year waiting period.
The government estimates the measure will save $1.2 billion over the next four years.
The extended waiting time will apply to paid parental leave, the Carers Allowance and the Family Tax Benefit.
Those bringing relatives over to Australia on a family visa will also need to guarantee their financial independence for three years.
There should be some “exemptions” for “vulnerable groups” as well as for some New Zealand citizens with children in their care.
The migrant welfare reforms and the cuts to university funding are the two biggest saving measures revealed in the Mid-Year Economic and Financial Outlook (MYEFO) in Australia, which was released by the Turnbull Government last week.
The budget update shows Australia is still on track to be out of debt and into a surplus by the financial year 2020-21, when the surplus is forecast to reach just above $7 billion.
Mr Scott Morrison says the welfare cuts are a necessary move.
"Lower level of payments has been driven by success at getting welfare spending under control as we continue on this path with further measures we are announcing today. Across the Social Services portfolio, payments are expected to be up to 2% lower under the forward estimates. This is due to the changes we have put in place despite the opposition of the Labor Party over several Budgets and getting people back into work. We now are the lowest level of welfare dependency of working age Australians in almost 25 years."
The government says it's on track to achieve its promise of returning the budget to surplus by mid-2021, and expects it to be almost 3 billion dollars larger than projections made back in May.
Mr Morrison also credited stronger-than-expected company tax collections and work by the Australian Tax Office for improving the budget position, while expected government debt has also dropped by around $23 billion over the next four years.
However Treasury's 2017/2018 economic growth forecast has been trimmed to 2.5 per cent, as has wages growth.
Mr Morrison says the government is living up to its promises.
"As we push into the new year, there is still more work to be done but we are on the right track. Jobs and growth will continue to be our mission and our focus. Helping the lives of the thousands of Australians, millions of Australians, and their families and returning the Budget back to balance."
Social Services Minister Christian Porter said many Australians would be surprised to learn migrants could access some family and parental payments immediately after arriving in Australia.
"Australians' expectation of newly-arrived migrants is that they contribute socially and economically for a reasonable period before having access to our nation's generous welfare system," Mr Porter said.
Community Groups
Community groups are saying the government's new welfare laws will make it harder for migrants to live in Australia.
Edwina MacDonald, Director of policy and advocacy at Australian Council of Social Service (ACOSS), estimated that 50,000 families will be hurt by the cut.
“The government should not risk increasing poverty by refusing essential support to people in financial need. People who do not have enough income to cover the essentials of life should have access to income support when they need it,” she said.
“This is a direct attack on recent migrants who already make huge contributions to our society; working, studying, caring and participating in our community.”
Ms MacDonald said the cuts will disproportionately affect women as they are most likely to receive paid parental leave and family tax benefits.
